Five Signs Your Business Needs A Warehouse Management System
Published on 12 October 2022
If you don't keep up with warehouse management best practices, your company risks falling behind the competition. Customers expect orders to be shipped the same day, without any errors. As a result, small and medium-sized businesses (SMBs) should consider the advantages of a Warehouse Management System and determine if not having one is negatively affecting their business.
The following are five indicators that your company requires a warehouse management system:
Tracking Inventory on Spreadsheets
If you’re operating a small business with a very limited number of SKUs, it’s possible that spreadsheets can still be used to keep track of stock in the warehouse. The fact remains, however, that spreadsheets are inconvenient to update and simply cannot give you an accurate indication of current inventory numbers. With a warehouse management system you can automate inventory management and do away with spreadsheets. A WMS allows you to keep on top of quantities and maintain visibility on all items, down to location, in real-time.
Your Distribution Center is Running Out of Space
When items begin to outgrow their location and crowd the aisles, companies are often inclined to think it’s time to relocate to a larger facility. However, moving is expensive and the process can slow down operations to a grind, affecting revenues and customer satisfaction. By implementing warehouse management best practices, companies can augment their distribution center’s capacity without having to relocate. A WMS can, for instance, optimize item locations and streamline workflows to help companies improve their throughput without the need for additional space.
Lack of Organization and Persisting Bottlenecks
A cluttered environment threatens more than the efficiency of your workflows. When items and equipment clog the aisles, inventory is at risk of being destroyed or misplaced and your workers’ safety is jeopardized. To avoid these dangers and prevent bottlenecks, employees must be accurately informed of every product’s location and able to take the optimal pick path. A WMS will assist you in arranging your inventory in the safest and most efficient manner possible and in optimizing picking tasks.
Products Are Frequently Out of Stock
It’s impossible for your distribution center to meet demand if your organization is unable to forecast sales. When customers are repeatedly frustrated because items are out-of-stock, this reflects poorly on your company’s reputation. And when items finally come in, employees are so busy trying to catch up that productivity suffers: everyone is dealing with backlog orders instead of working with the flow of new orders. Warehouse management systems are an essential tool to accurately forecast sales and optimize channel management.
Recurrent Shipping Delays
A chaotic distribution center leads to slower order fulfillment. When picking and packing activities take longer than they should, either orders fail to be shipped on time, or your organization has to throw more labor at the task to make sure products are delivered to customers as promised—which of course comes with a hefty financial penalty. A WMS will help you simplify your operations, streamline workflows, and fulfill orders on time so that you may keep your promises and increase customer satisfaction.
Your distribution center must grow in tandem with the rest of your company. Any warehousing delays prevent your company from expanding its market reach and earnings. Remember that during peak seasons, when the potential for maximum earnings is at its greatest, even the smallest warehouse management issue will become a real thorn in your side. If one of the telltale signs listed above sounds familiar, do not delay; implement solutions to ensure your company’s productivity when it matters most.
About Generix Group North America
At Generix Group North America, we provide a series of solutions to create efficiencies across your entire supply chain. Our solutions are in use around the world and our experience is second-to-none.
We invite you to contact us to learn more.
Download our Guide to the Warehouse of the Future
Did you enjoy this post about the benefits of warehouse management systems? Here are three to read next:
- Achieving Exponential Growth with Your WMS
- Manufacturing: Your WMS Ecommerce Requirements Checklist
- Transport time and costs: the 4 advantages of the Generix solutions